enviva partners, lp (nyse: eva) business overview
TRANSCRIPT
Enviva Partners, LP
Business Overview
Last Updated: May 10, 2021
(NYSE: EVA)
2
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
Forward-looking statements
This presentation contains “forward-looking statements” within the meaning of the securities laws. All statements, other than statements of historical fact, included in this presentation that
address activities, events or developments that Enviva Partners, LP (NYSE: EVA) (“Enviva,” the “Partnership,” “we,” or “us”) expects, believes or anticipates will or may occur in the future
are forward-looking statements. The words “believe,” “expect,” “may,” “estimates,” “will,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are
intended to identify forward-looking statements, which are generally not historical in nature. However, the absence of these words does not mean that the statements are not forward-
looking.
These statements are based on certain assumptions made by Enviva based on management’s expectations and perception of historical trends, current conditions, anticipated future
developments, and other factors believed to be appropriate. Although Enviva believes that these assumptions were reasonable when made, because assumptions are inherently subject
to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond its control, Enviva cannot give assurance that it will achieve or accomplish these
expectations, beliefs, or intentions. A number of the assumptions on which these forward-looking statements are based are subject to risks and uncertainties, many of which are beyond
the control of Enviva, and may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These risks and uncertainties include the
factors discussed or referenced in our filings with the Securities and Exchange Commission (the “SEC”), including the Annual Report on Form 10-K and the Quarterly Report on Form 10-
Q most recently filed with the SEC, including those risks relating to financial performance and results, economic conditions and resulting capital restraints, availability of sufficient capital
to execute Enviva’s business plan, the ability of Enviva to complete acquisitions and realize the anticipated benefits of such acquisitions, impact of compliance with legislation and
regulations, the continued impact of COVID-19, and other important factors that could cause actual results to differ materially from those projected. When considering the forward-looking
statements, you should keep in mind the risk factors and other cautionary statements in such filings.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which such statement is made, and Enviva undertakes no obligation to
correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. All forward-looking statements
attributable to Enviva are qualified in their entirety by this cautionary statement.
Industry and market data
This presentation has been prepared by Enviva and includes market data and other statistical information from third-party sources, including independent industry publications,
government publications or other published independent sources. Although Enviva believes these third-party sources are reliable as of their respective dates, Enviva has not
independently verified the accuracy or completeness of this information. Some data is also based on Enviva’s good faith estimates, which are derived from its review of internal sources
as well as the third-party sources described above.
3
Visible drop-down pipeline supported by well capitalized Sponsor
3+ Million MTPY
ENVIVA: HIGH GROWTH AND DURABLE LONG-TERM CASH FLOWS
1) The Partnership’s expected production capacity includes nameplate capacity of approximately 600,000 metric tons per year (“MTPY”) for the wood pellet production plant in Greenwood, South Carolina (the “Greenwood plant”) after completion of the expansion project, and excludes expansion
projects underway at the Sampson, Hamlet, and Cottondale plants (the “Multi-Plant Expansions”); 2) On February 17, 2021, the Partnership and Enviva Holdings, LP (our “sponsor”) announced our goal of achieving net zero greenhouse gas (“GHG”) emissions in our operations by 2030; 3) As
of April 1, 2021, excluding volumes under the contracts between long-term off-take customers and our sponsor; 4) As of April 1, 2021, including all volumes under the contracts between long-term off-take customers and the Partnership and our sponsor; 5) As of April 28, 2021, the Partnership
expects to distribute at least $3.17 per common unit for full-year 2021, before considering the benefit of any acquisitions or drop-down transactions; 6) As announced on April 28, 2021, the board of directors of our general partner (the “Board”) declared a distribution of $0.785 per common unit
for the first quarter of 2021; 7) 2015 - 2021 Compound Average Growth Rate (“CAGR”) utilizes $1.65 minimum quarterly distribution per unit for 2015 and $3.17 distribution per unit for 2021. The annualized total return for the Partnership’s common units since the Partnership’s IPO is per
Bloomberg data, as of April 30, 2021; 8) The Partnership targets a 50/50 equity/debt capital structure for drop-downs, acquisitions, and major expansions, a total ratio of net debt to adjusted EBITDA (the “Leverage Ratio”) of 3.5 - 4 times, and a distribution coverage ratio of 1.20 times, on a
forward-looking annual basis. The Partnership’s Leverage Ratio is calculated pursuant to the Partnership’s credit agreement and may reflect the pro forma impact of drop-downs, acquisitions, and major expansions
~5.4 Million MTPYWorld’s largest utility-grade wood pellet producer
Committed to net zero by 20302
1
Robust Long-Term DemandDriven by global commitment to phase out coal, limit the impact
of climate change, and achieve net zero GHG emissions
Fully Contracted$14.5 Billion / 12.8 years at the Partnership3
$20 Billion / 14.2 years enterprise-wide4
5
Conservative Financial Policy50/50 equity/debt structure, 3.5 – 4.0x Leverage Ratio,
and 1.20x forward-looking annual distribution coverage8
Distribution per Unit of $3.17+23 consecutive distribution increases6
12% CAGR7 and 26% annualized total return7 since IPO
4
EVA TOTAL RETURN1
1) As of April 30, 2021. Based on Bloomberg’s total return data, which assumes reinvestment of distributions/dividends. Normalized for comparison purposes;
2) 2015 - 2021 CAGR utilizes $1.65 minimum quarterly distribution per unit for 2015 and $3.17 distribution per unit for 2021;
3) First distribution per unit represents the prorated amount of the Enviva Partners, LP minimum quarterly distribution of $0.4125 per unit, based on the 58 days during the period commencing (and including) May 4, 2015, the date on which the Enviva Partners, LP’s initial
public offering closed, and ending June 30, 2015, the last day of the second quarter. Actual declared quarterly cash distribution was $0.2630 per common and subordinated unit for the second quarter of 2015;
4) MSCI USA IMI ESG Index is a capitalization-weighted index comprised of US-based companies that outperform sector peers on ESG evaluation metrics
Since IPO in
2015, EVA has
outperformed
the S&P 500
by 209%20.40
0.45
0.50
0.55
0.60
0.65
0.70
0.75
0.80
0.85
-
50
100
150
200
250
300
350
400
450
Quarterly Distribution Per Unit EVA Alerian MLP Index MSCI USA IMI ESG S&P 500
336%
127%
101%
(27%)
5
ENVIVA: FIGHTING CLIMATE CHANGE, DISPLACING COAL,1 GROWING MORE TREES2
1) Increasing the share of biomass on the global grid system is critical to the global energy transition. International Renewable Energy Agency’s “World Energy Transitions Outlook: 1.5○C Pathway (Preview)” report calls for the share of modern biomass for energy generation
to increase from 3% in 2018 to 18% in 2050, and the share of coal for energy generation to decrease from 11% to 2% over the same period; 2) Landowners in the US South respond to strong markets for forest products by making investments in their forests and there is a
clear positive relationship between rates of forest harvest and forest acreage, growth, and inventory. Based on FIA data for the US South covering the 70-year period since 1953, Forest2Market concluded that “Increased demand for wood … encouraged landowners to invest
in productivity improvements that dramatically increased the amount of wood fiber, and therefore the amount of carbon, contained in the South’s forests.” Source: Forest2Market report, “Historical Perspective on the Relationship between Demand and Forest Productivity in
the US South”, July 2017; 3) Eurostat. Inland coal consumption in key European countries that Enviva serves; 4) Industrial wood pellet demand for Belgium, Denmark, Netherlands and U nited Kingdom. Hawkins Wright: The Outlook for Wood Pellets – Demand, Supply,
Costs and Prices; 4th quarter 2020; 5) USDA Forest Service, Forest Inventory and Analysis Program. Enviva’s primary sourcing regions consist of the Chesapeake (NC, VA); Wilmington (NC, SC, GA); and Gulf (AL, FL, GA, MS) regions; 6) Metric Tons
Coal Consumption
Declined by More than Half3
Wood Pellet
Consumption More Than Doubled4
Strong Forest Inventory Growth
in Enviva’s Sourcing Regions5
Through Q1-2021, Wood Pellets Supplied by the Partnership and our Sponsor have Effectively Displaced 21 Million MT6 of Coal
0
20
40
60
80
100
120
2012 2013 2014 2015 2016 2017 2018 2019
Mill
ion
MT
Belgium Denmark Netherlands UK
With Existing Contracts Running Through 2045, the Partnership and our Sponsor are on Track to Displace Another 90 Million MT of Coal
1,950
2,000
2,050
2,100
2,150
2,200
2,250
2,300
2,350
2,400
2,450
2,500
2012 2013 2014 2015 2016 2017 2018 2019
Mill
ion
MT
0
2
4
6
8
10
12
2012 2013 2014 2015 2016 2017 2018 2019
Mill
ion
MT
6
Levelized Cost of Electricity in Japan in 2020 (US$ / MWh)4
SUBSTANTIAL GHG EMISSIONS REDUCTIONS AND LOWEST-COST, DROP-IN RENEWABLE FUEL
1) Enviva estimates; 2) Source: Union Pacific; 3) Aurora Energy Research – Biomass conversions & the system cost of renewables (November 2016). Total System Cost of Electricity (TSCE) is the per-megawatt hour cost of building and operating a generating plant over an
assumed financial life including intermittency, security of supply, balancing, grid expansion, and heat adjustment (applicable for CHP only). Data is for Germany and may not be representative of all the markets in which we or our customers operate. CHP is Combined Heat &
Power. Expansion costs are related to the electricity grid only. New build CCGT could require gas grid expansions, the cost of which is not included here; 4) IHS Markit: Levelized Cost of Power Generation in Japan, May 8, 2017. Costs are presented in real terms, as of 2020.
In contrast to TSCE, Levelized Cost of Electricity (LCOE) does not include the intermittency costs associated with wind and solar power. LCOE for Dedicated Biomass assumes biomass wood-burning power plants with 112 MW of capacity and 40% efficiency; 5) Boundless
Impact Investing: “Life-cycle assessment of U.S. biomass supply and the role of biomass electricity for meeting UK emission objectives”; 6) Combined Heat and Power
Wood Pellet vs. Coal Attributes
Wood Pellets¹ Southern PRB Coal²
Heat Content (BTU/lb) 8,000 8,600
Moisture 4 – 10% 26 – 30%
Ash 0 – 2% 4.6 – 5.7%
Sulfur 0 – 0.15% < 1.0%
Wood Pellets Provide the Low-Cost, Drop-In Replacement for Coal Total System Cost of Electricity in Germany (€ / MWh)3
Biomass Conversion with CHP
CCGT
Biomass Conversion
Onshore Wind
Solar
0 € 50 € 100 € 150 €
BiomassCo-Firing
CCGT
Dedicated Biomass
Wind
Solar
$0 $50 $100 $150 $200 $250
Lifecycle GHG Emissions Reduction vs. Fossil Fuels5
0.0
0.2
0.4
0.6
0.8
1.0
kgC
O2
e/k
Wh
87% 94%
71%82%
GHG Emissions Reduction in Electricity Generation
GHG Emissions Reduction in CHP6 Applications
7
GLOBAL COMMITMENT TO FIGHT CLIMATE CHANGE DRIVES MARKET GROWTH
1) The European Commission sets out goals for Europe’s economy and society to become climate-neutral by 2050 in the European Green Deal; 2) Renewable Energy Directive II; 3) The European Climate Law aims to write into law the goals set out in the European Green
Deal; 4) International Renewable Energy Agency’s “World Energy Transitions Outlook: 1.5○C Pathway (Preview)”, March 2021; 5) The Government of the Netherlands commits to climate goals in the Climate Act (May 28, 2019); 6) Source: Enerdata: coal and lignite domestic
consumption. Germany consumed 171 million tons of coal and lignite in 2019; 7) On July 3, 2020, Germany’s Bundestag passed the Coal Exit Law 19/20730; 8) Gigawatts; 9) UK’s Climate Change Act 10) Ministry of Economy, Trade and Industry; 11) Estimated demand for
biomass of 15 to 20 million MTPY is based on Enviva’s estimates assuming power plant efficiencies similar to existing European customers. Actual biomass consumption at Japanese power plants may vary; 12) Feed-in-Tariff; 13) Japan’s Strategic Energy Plan outlines the
direction of Japan's energy policy governed by the Basic Act on Energy Policy; 14) Japan’s Green Growth Strategy; 15) Announced on April 22, 2021 as part of the Leaders Summit on Climate
→ EU Commission’s taxonomy recognizes bioenergy used for power and heat as making a substantial contribution to climate mitigation, alongside solar and wind
→ All 27 EU member states agreed to raising EU’s 2030 GHG emission reduction target from 40% to 55%1, as compared to 1990 levels, and RED II2 calls for renewables to account for at least 32% of EU’s gross consumption by 2030
→ European Climate Law sets legally binding target of net zero by 20503
→ The International Renewable Energy Agency specifies that biomass in energy generation needs to increase from 3% in 2018 to 18% in 2050 in order to reach net zero in 20504
→ Legally binding goal to phase out coal from power generation by 2030 and commitment to a 49% reduction in GHG emissions by 2030, surpassing existing EU target5
→ One of the first EU countries to announce plans to eliminate natural gas from its energy mix
→ Long tradition of supporting renewable energy, including biomass, which is its largest source of renewable energy, via the SDE, SDE+, and SDE++ programs
→ Largest user of coal in the EU with more than 170 million metric tons consumed in 20196; recently passed the Coal Exit Law7 mandating complete phase-out of coal-fired power generation by 2038, shutting down or converting 43.9 GWs of coal capacity to alternative fuels, and targets phase-out of 9.5 GWs8 of nuclear generation by 2022
→ Regulations for long-term financial support for electricity and heat conversions from fossil fuels to biomass expected to be announced mid-year 2021
→ METI10 targets ~6 - 7.5 GWs of biomass generation by 2030, equivalent to ~15 - 20 million MTPY of demand11; 20-year FiT12 support with requirement to use biomass for another 20 years
→ METI is working to revise its Strategic Energy Plan by mid-2021, which is expected to increase the share of renewable power in the 2030 energy mix to 45%, from the 22% - 24% under the current plan13
→ Prime Minister Yoshihide Suga pledged that the country would be net zero by 2050; METI targets 50% - 60% of the nation’s power supply to be renewable by 205014
→ President Biden committed to achieve a 50% - 52% reduction in GHG emissions by 203015
→ New target contemplates expanding carbon capture in industrial processes for cleaner steel and cement and enhancing carbon sinks like our forests
→ Long-time leader in renewable energy targeting 15% of energy supply to come from bioenergy by 2050 and recently raised its commitment to cut GHG emissions to at least 68% by 2030, as compared to 1990 levels9
→ Strong commitment to bioenergy as a source of heat and power and support of Bioenergy with Carbon Capture and Storage (BECCS) as a key negative carbon-emissions solution
→ New Industrial Decarbonization Strategy outlines framework for industries to switch from fossil fuels to low-carbon alternatives such as biomass
GERMANY
UK
US
JAPAN
→ Taiwan is currently one of the largest coal consumers in Asia, and the government is actively pursuing decarbonization of its energy supply chain
→ Our sponsor recently hired a development team to support business and policy progress, and to assist major utilities and power generators with evaluating and effecting profitable conversions of assets from coal-to-biomass-fired generation
EU
NETHERLANDS
TAIWAN
8
STRATEGICALLY LOCATED PRODUCTION1 AND TERMINAL ASSETS
Southampton, VA
Northampton, NC
Hamlet, NC Sampson, NC
Greenwood, SC
Waycross, GA
Cottondale, FL
Port of Chesapeake, VA
Port of Savannah, GA
Ahoskie, NC
Port of Wilmington, NC
Amory, MS
Port of Mobile, AL
Port of Chesapeake, VA
Ahoskie, NCNorthampton, NC
Southampton, VA
THE CHESAPEAKE CLUSTER
Southampton: 760,000 MTPY2
Northampton: 750,000 MTPY2
Ahoskie: 410,000 MTPYPort of Chesapeake: 2.5 million MTPY throughput capacity
Sampson, NCHamlet, NCPort of Wilmington, NC Greenwood, SC
THE WILMINGTON CLUSTER
Greenwood: 500,000 MTPY3
Hamlet: 600,000 MTPYSampson: 600,000 MTPYPort of Wilmington: 3 million MTPY throughput capacity
Port of Panama City, FLCottondale, FL
Cottondale: 780,000 MTPYPort of Panama City: Warehouse storage with 32,000 metric tons of capacity
Waycross: 800,000 MTPYPort of Savannah: ~1.5 million MTPY of throughput capacity
Waycross, GAPort of Savannah, GA
Amory: 115,000 MTPYPort of Mobile: Flex barge storage with 45,000+ metric tons of capacity
THE SAVANNAH CLUSTER
1) Volumes related to plants represent production capacity at each facility;
2) Includes increased production capacity pursuant to the ongoing expansion projects (the “Mid-Atlantic Expansions”) at the wood pellet production plants in Northampton, North Carolina (the “Northampton plant”) and Southampton, Virginia (the “Southampton plant”).
The Partnership continues to expect each plant to reach its expanded nameplate production capacity of 750,000 MTPY and 760,000 MTPY, respectively, by the end of 2021;
3) The project to expand the Greenwood plant’s production capacity to 600,000 MTPY is expected to be completed by year-end 2021
Amory, MSPort of Mobile, AL
Plants
Terminals
9
▪ A “build and copy” approach allows for highly-efficient, large-scale production facilities
and creates operating leverage
▪ Multi-plant profile and global scale translate into superior reliability and opportunities for
optimization
▪ Access to robust fiber baskets allows for reliable raw material supply and a flat marginal
cost curve for incremental production
UNPARALLELED GLOBAL SCALE PROVIDES DURABLE COMPETITIVE ADVANTAGES
Enviva is the world’s largest supplier
of utility-grade wood pellets in a highly
fragmented industry with numerous
small, single-plant operators
INDEPENDENT
GLOBAL ENTERPRISE
SUPPLIERS
SMALL & REGIONAL
SUPPLIERS
Enviva
Production Capacity (Thousand MTPY)
Graanul Invest
An Viet Phat
FRAM
Highland Pellets
SY Energy
Pacific BioEnergy
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500
As the world’s largest supplier of utility-
grade wood pellets, Enviva is frequently the
sole-source supplier for our customers
1) Enviva’s total production capacity and number of plants are based on nameplate capacities of our existing operating plants, the Greenwood plant after completion of the expansion project, a wood pellet production plant in Lucedale, Mississippi (the “Lucedale plant”), which
is currently under construction by our sponsor, a wood pellet production plant in Epes, Alabama (the “Epes plant”), which is currently under development by our sponsor, the Multi-Plant Expansions, and embedded expansion options at the Lucedale and Epes plants. Also
included in the number of plants is a site in Bond, Mississippi (the “Bond Plant”), which our sponsor controls and which is currently in the early stages of the development process. We expect to have the opportunity to acquire assets or completed development projects from
our sponsor in the future. Production capacity and number of plants for other pellet producers are based on Hawkins Wright: The Outlook for Wood Pellets – Demand, Supply, Costs and Prices; first quarter 2021; 2) Includes the Bond Plant. We expect to have the opportunity
to acquire assets or completed development projects from our sponsor in the future; 3) On April 13, 2021, Drax Group plc (“Drax”) through its wholly-owned subsidiary, Drax Canadian Holdings Inc., acquired all of the issued and outstanding common shares of Pinnacle
Renewable Energy Inc. (“Pinnacle”)
VERTICALLY-INTEGRATED
ENERGY GENERATORDrax3
Region# of
Plants1
2 Vietnam
4 U.S.
3 U.S.
Canada3
3 South Korea
U.S.12
12 Baltics/U.S.
17 Canada/U.S.
2022
10
COMMITMENT TO NET ZERO IN OUR OPERATIONS BY 2030
The Partnership and Our Sponsor Commit to the Goal and Plan to Become Net Zero in Our Operations by 2030
Scope 1direct emissions from assets owned
and controlled by Enviva
Scope 2indirect emissions from heat, steam
or electricity purchased by Enviva
Scope 3indirect emissions in Enviva’s
upstream or downstream value chain
Transparency and Reporting
• Track and report annually on all emissions
• Commit to disclose climate-relevant data and risks through CDP (formerly the Carbon Disclosure Project) by the end of 2022
6%
53%41%Our 2019
Emissions
For Scope 1 Emissions
• Immediately work to minimize the emissions from fossil fuels used directly in our operations
• Offset 100% of our residual emissions through investments in projects that result in real, additional, and third-party verified net-carbon reductions
• Focus on forest offsets in partnership with Finite Carbon and others
For Scope 3 Emissions
• Proactively engage with partners and other key stakeholders to adopt clean-energy solutions, including trucking, rail, and shipping logistics
• Take steps to accelerate and advocate for the development of new solutions and to work with stakeholders to bring those solutions to market
For Scope 2 Emissions
• Source 100% of energy for our operations from renewable sources by 2030, with interim target of at least 50% by 2025
• Maximize use of on-site renewable energy generation at our facilities, as well as develop new off-site renewable energy resources physically located in our operating regions where possible
11
1) All data except data for Brazil are from RISI World Timber Price Quarterly – Preliminary data for the fourth quarter of 2020 updated on January 25, 2021. The wood chip price for Latvia is based on CIF Sweden. Data for Brazil is from Forest2Market -
the cost of delivered wood chips in Brazil is approximately US$41-$43 per green metric ton. The primary in-country market for these chips is the food production and crop industries, which use chips for heat and drying purposes. However, the average
minimum FOB price in Brazil is around US$148 per dry metric ton due to the logistical and administrative costs related to exporting these chips;
2) FIA UDSA Forest Service Forest Inventory and Analysis Database;
3) Forest2Market: “Historical Perspective on the Relationship between Demand and Forest Productivity in the US South,” 2017
Raw Material (Wood Chip) Price US$ / Dry Ton1
Southern US
Brazil
$62
$148
$141
Germany
Japan
$141Latvia
$156
▪ For every ton of wood harvested from the working forests of the U.S. Southeast, ~1.7 tons grow back each year2
▪ Only ~2.5% of the forest area is harvested each year in the U.S. Southeast, of which less than 3% is used to produce wood pellets3
▪ Over 100,000 private landowners in the U.S. Southeast, with only a few buyers (like Enviva) of low-grade fiber
▪ Long-term, stable cost given abundant supply and few buyers for low-grade fiber
Global Wood Fiber Supply Advantages
Exist in the U.S. Southeast
KEY BASIS DIFFERENTIAL & STABLE COSTS DRIVEN BY ROBUST NATURAL RESOURCE GROWTH
12
U.S SOUTHEAST | NEGATIVE DEPLETION RESOURCE DRIVES STABLE COSTS
1) FIA Data (EVALIDator; 2019): In the last year where state forest inventory data is available, total wood fiber within the fiber sourcing area for the Partnership’s Northampton plant grew by approximately 30.4 million tons and total harvest removals were approximately
16.7 million tons, resulting in 13.7 million tons of excess fiber; 2) FIA Data; 3) Timber Mart South – North Carolina Q1 2021; 4) Source: FIA UDSA Forest Service Forest Inventory and Analysis Database; 5) Source: Forest2Market: “Historical Perspective on the
Relationship between Demand and Forest Productivity in the US South,” 2017
$148
▪ 100,000+ private landowners
▪ Only a few buyers of low-grade fiber,
which only cost-effectively travels
~75 miles
$0
$10
$20
$30
$40
$50
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
North Carolina Pulpwood
For Every Ton of Wood Harvested from the Working Forests of the U.S. Southeast, Approximately 1.7 Tons Grow Back Each Year4
Only ~2.5% of the Forest Area is Harvested Each Year in the U.S. Southeast, of Which Less Than 3% is Used to Produce Wood Pellets5
Net Fiber Growth After All Uses2
9%
15%
GULF SOURCING
REGION
CHESAPEAKE SOURCING
REGION
WILMINGTON SOURCING
REGION660
680
700
720
740
2012 2013 2014 2015 2016 2017 2018 2019
Mill
ion
MT
of
Wo
od
In
ven
tory
10%
830
880
930
980
1,030
2012 2013 2014 2015 2016 2017 2018 2019
Mill
ion
MT
of
Wo
od
In
ven
tory
20%
580
620
660
700
740
2012 2013 2014 2015 2016 2017 2018 2019
Mill
ion
MT
of
Wo
od
In
ven
tory
15%
Long-term, Stable Delivered Cost of Fiber3
US$ / green ton
▪ ~1.3 million tons annual facility
demand
▪ ~13.7 million tons net annual fiber
excess1
Fragmented, Natural Resource Supply Base
Hardwood Roundwood Pine Roundwood Open / Farmland
75 mi.
Northampton
13
Sponsor’s Track & Trace® Program, a first-of-its-kind system, is an important element of our responsible wood
supply program and provides unprecedented transparency into our procurement activities
ENVIVA’S ACTIVITIES SUSTAIN THRIVING, HEALTHY FORESTS
1) USDA - http://blogs.usda.gov/2015/06/08/study-finds-increasing-wood-pellet-demand-boosts-forest-growth-reduces-greenhouse-gas-emissions-creates-jobs/ 2015;
2) The information in this panel is based on wood supplied to the Partnership and our sponsor’s production plants from July through December 2020;
3) This wood consists of undersized or “understory” wood that was removed as part of a larger harvest; tops and limbs; brush and “thinnings” that were removed to make additional room for planted pines to grow;
4) We can identify the individual production facilities that provided these materials
Between 2010, when Enviva opened its first U.S. plant, and
2019, forest inventory in our supply base increased by more
than 400 million metric tons
“An industry that can reduce greenhouse gas emissions,
increase forest growth, and create jobs sounds too good to be true. But that is
the reality of the emerging wood pellet market in the Southern U.S.”¹
- Former USDA Chief Economist Robert Johansson
Forest data analytics demonstrate increased harvests and
healthy markets increase growth in forest acreage, timber
inventory, and carbon stored in the landscape
17%Mill & industry residues4
1%Bottomland hardwood
forests
35%Pine forests with
hardwood understory3
<1%Arboricultural residues
25%Mixed pine &
hardwood forests
Our Wood Came from These Sources:2
19%Pine forests
3%Other hardwood
forests
PEFC / 29-31-238 SFI-01203
Certifications with Annual Audits by Independent Certification Bodies:
14
LONG-TERM, TAKE-OR-PAY OFF-TAKE CONTRACTS DELIVER STABLE CASH FLOWS
Typical Contract Provisions1
CounterpartyMajor utilities and investment
grade-rated trading houses
Term Up to 20 years
Take-or-Pay Yes
Termination Make-Whole Yes
Margin Protection1
Price escalators Yes
Fiber / diesel passthroughs Yes, in some contracts
Shipping costsFixed with matching long-term
shipping contracts
Bunker fuel passthrough Yes
Changes in Law / Government Regulations
Provisions designed to protect
against changes in law /
government regulations
1) Note: off-take contract terms are examples of various provisions within our portfolio of contracts. No single contract in our portfolio contains every provision listed above;
2) Not representative of all contracts with regard to stumpage and diesel passthroughs
1
Illustrative Passthroughs and Escalators2
$0
$40
$80
$12 0
$16 0
$20 0
Traditional Pulpwood
Other
Base Price
Bunker Fuel
Production Capacity Matched with Robust Long-Term Contracts with High-Credit Counterparties
ShippingFixed, back-to-
back shipping
component with
bunker fuel
passthrough
Price escalators
protect against
erosion of
underlying cost
position and provide
opportunity for
margin expansion
Can include
stumpage, diesel or
other adjustments
15
INCREASINGLY DIVERSE CUSTOMER BASE FURTHER ENHANCES STABILITY
1) Represents the Partnership’s sales in 2020;
2) As of April 1, 2021, excluding volumes under the contracts between long-term off-take customers and our sponsor;
3) As of April 1, 2021, including all volumes under the contracts between long-term off-take customers and the Partnership and our sponsor. Although the Partnership expects to have the opportunity to acquire these contracts from our sponsor, there can be no guarantee
that we will acquire these, or any, contracts from our sponsor
$14.5 Billion / 12.8 years at the Partnership2
$20 Billion / 14.2 years enterprise-wide3
~50% from Japanese
customers with largest
customer representing
~15% of the contract mix
by 20253
Lynemouth
Orsted
Drax
Engie
Other
2020 Off-Take Contract Mix1 2025 Off-Take Contract Mix3
~4.3 million MTPY ~7.1 million MTPY3
Other Creditworthy Japanese
Customers
Mitsubishi
Toyota Tsusho
Suzukawa
Sumitomo
Forestry
Sumitomo
Ichihara
Marubeni
Drax
Lynemouth
MGT
OrstedEngie
16
Third-Party Acquisition
Opportunities
Accretive Drop-Downs
from Our Sponsor4
Organic Growth within
the Partnership
THREE PILLARS OF GROWTH
▪ Pricing increases and escalators under existing
contracted position
▪ Construction of 400,000 MTPY aggregate
production capacity expansion completed at
Northampton and Southampton plants
▪ ~$130 million investment and ~$28-$32
million in expected incremental adjusted
EBITDA annually1,3
▪ On track to expand Greenwood to 600,000
MTPY production capacity by year-end 2021
▪ Expansion projects underway at the Sampson,
Hamlet, and Cottondale plants
▪ ~$50 million expected investment and ~$20
million in expected incremental run rate
adjusted EBITDA annually2,3
▪ Anticipated annual organic growth driven by
contract price escalations, cost reductions and
productivity improvements
1) The estimated incremental adjusted EBITDA that can be expected from the expansions is based on an internal financial analysis of the anticipated benefit from the incremental production capacity at the Northampton and Southampton production plants;
2) The estimated incremental adjusted EBITDA that can be expected from the expansions is based on an internal financial analysis of the anticipated benefit from the incremental production capacity and cost savings at our wood pellet production plants in Sampson, NC
(the “Sampson plant”), Hamlet, NC (the “Hamlet plant”), and Cottondale, FL (the “Cottondale plant”), subject to receiving the necessary permits. The Partnership expects to complete the expansion projects by the end of 2022;
3) For an explanation of why we are unable to reconcile the estimated adjusted EBITDA for the Mid-Atlantic Expansions and the Multi-Plant Expansions to the most directly comparable GAAP financial measures, see Appendix;
4) Although we expect to have the opportunity to acquire assets or completed development projects and associated contracts from our sponsor in the future, we cannot assure you that our sponsor will be successful in completing their development projects or that we
will successfully negotiate an agreement with our sponsor to acquire such assets, projects, or associated contracts
▪ Five drop-downs since IPO, including 2.3 million
MTPY of production capacity and 3.0 million
MTPY of terminaling capacity
▪ Construction of the fully contracted Lucedale
plant and the Pascagoula terminal
▪ Development of the fully contracted wood pellet
production plant in Epes, Alabama
▪ Announced development of a site in Bond,
Mississippi for a potential new plant
▪ Evaluation of additional sites for pellet production
plants and deep-water marine export terminals
across the U.S. Southeast to serve the balance of
the $5.5 billion in current long-term contracted
demand at our sponsor, which is complemented
by material contract volumes under negotiation
with utilities and power generators in current and
evolving markets around the globe
▪ Proven, successful, and selective acquirer
▪ Acquisitions must compare favorably to sponsor
development pipeline and drop-down economics
▪ Target opportunities must be core to the
business and bring new customer set, strategic
capability and / or geographic diversification
▪ The Partnership acquired the Cottondale plant in
January 2015 and the Waycross plant in July
2020
▪ Our sponsor acquired the Greenwood plant in
2018. The Partnership acquired the Greenwood
plant from our sponsor in 2020
Organic Growth within the
Partnership
17
15%
20%
15%
▪ “Build and copy” production
plant under development2
▪ Purchased the project site and
commenced certain pre-
construction activities
▪ Finished product to be delivered
to Port of Pascagoula by barge
Plants in the Partnership
Plants under construction / development
Plant sites under control
Plant sites under assessment1
Terminals owned or leased by the Partnership
Terminals under construction
LUCEDALE, MS
▪ Continued development of a site in Bond,
MS for a potential new plant2
▪ Expected to be designed to produce
between 750k and more than 1 million MTPY
▪ Production to be delivered to Port of
Pascagoula on a cost-efficient basis
BOND, MS
EPES, AL
▪ “Build and copy” production
plant under construction for
completion mid-year 20212
▪ Located in robust fiber basket
region
▪ ~50 miles to Port of Pascagoula
PORT OF PASCAGOULA, MS
▪ “Build and copy” deep-water
marine terminal under construction
for completion mid-year 20212
▪ 3+ million MTPY nameplate
throughput capacity
▪ Multi-modal access by rail, truck,
and barge
▪ Deep berth capable of supporting
Panamax vessels
The Sponsor’s Existing Contracts and Sales Pipeline Support Several Production Plants Around the Pascagoula Terminal
3+ MILLION MTPY FULLY FINANCED “BUILD AND COPY” SPONSOR DEVELOPMENT PIPELINE
1) Assets under assessment are shown at approximate locations;
2) Although we expect to have the opportunity to acquire assets or completed development projects and associated contracts from our sponsor in the future, we cannot give assurance that our sponsor will be successful in completing their development
projects or that we will successfully negotiate an agreement with our sponsor to acquire such assets, projects, or associated contracts
18
SPONSOR PROJECTS NEARING COMPLETION
15%
20%
15%
▪ Fully contracted, 750k MTPY nameplate production capacity plant
located in Lucedale, Mississippi
▪ Designed and permitted for a future 300k MTPY expansion2
▪ Design based on Cottondale and Hamlet plants
▪ <50 miles to Port of Pascagoula, reachable via truck or rail
▪ ~$25 - $35+ million expected run-rate EBITDA contribution3
▪ Expected completion in the middle of 2021
LUCEDALE PLANT1
Production Capacity Matched to Robust Long-Term Contracts with High-Credit Counterparties
PORT OF PASCAGOULA TERMINAL1
Development
Stage
Development
Final Investment
Decision
Construction
Ramp Up
▪ ~3 million MTPY nameplate throughput capacity export terminal
▪ Design based on Chesapeake and Wilmington terminals
▪ Multimodal access by truck, rail, and barge4
▪ ~$10 - $15+ million run-rate EBITDA3 with throughput from Lucedale,
Epes, and Amory plants
▪ Construction expected to be completed in the middle of this year,
with the first shipment from the terminal expected later this year
1) Although we expect to have the opportunity to acquire assets or completed development projects and associated contracts from our sponsor in the future, we cannot give assurance that our sponsor will be successful in completing their development projects or that we will
successfully negotiate an agreement with our sponsor to acquire such assets, projects, or associated contracts;
2) The Lucedale Plant is currently designed and permitted with an embedded expansion project that, if executed, would increase its production capacity from 750,000 MTPY to 1.1 million MTPY. Additional details are available as part of our earnings release as of April 28, 2021;
3) The estimated incremental adjusted EBITDA from a drop-down of a wood pellet production plant or a marine terminal represents the run-rate adjusted EBITDA that can be expected from such a facility, based on estimated production or terminaling capacity of such a facility
upon achieving full run-rate and our sponsor’s existing contracts that may be associated with such a facility;
4) When fully constructed, the Pascagoula terminal will be able to receive wood pellets by truck, rail, and barge. Additional details are available as part of our earnings release as of April 28, 2021
19
MULTI-PLANT EXPANSIONS UPDATE
Hamlet Sampson
Cottondale
▪ Expected investment of $50 million to:
1. De-bottleneck manufacturing processes
2. Eliminate certain costs
3. Increase production capacity
4. Reduce GHG emissions
▪ Expected annual adjusted EBITDA
contribution projected to be $20 million1
upon completion and ramp-up of projects
▪ Projects expected to be completed by the end
of 2022
▪ Projects forecasted to be financed with 50%
equity and 50% debt
Expected Adjusted EBITDA1 Project Investment Multiple
2.5x
Multi-plant expansions commenced at 3 plants, Hamlet, Sampson, and Cottondale. Project completions are subject to receiving necessary permits.
Highly-Accretive Growth Projects Underway
1) For an explanation of why we are unable to reconcile the estimated adjusted EBITDA for the Multi-Plant Expansions to the most directly comparable GAAP financial measures, see Appendix
20
VISIBLE GROWTH
1) This chart is for illustrative purposes and consists of estimates based on numerous assumptions made by us that are inherently uncertain and are subject to significant risks and uncertainties, which are difficult to predict and many of which are beyond our control. There
can be no assurance that any of the estimates may prove to be correct. Actual results may differ materially; 2) As of April 28, 2021, the Partnership expects full-year 2021 net income to be in the range of $42.3 million to $62.3 million and adjusted EBITDA to be in the
range of $230.0 million to $250.0 million. The guidance amounts do not include the impact of any additional acquisitions by the Partnership from our sponsor or third parties; 3) The estimated incremental adjusted EBITDA that can be expected from the Mid-Atlantic
Expansions and the Multi-Plant Expansions is based on an internal financial analysis of the anticipated benefit from the incremental production capacity and cost savings at these production plants. For an explanation of why we are unable to reconcile the estimated adjusted
EBITDA for the Mid-Atlantic Expansions and the Multi-Plant Expansions to the most directly comparable GAAP financial measures, see Appendix; 4) The estimated range of incremental adjusted EBITDA for Greenwood and Waycross plants is $56-$60 million in 2024 after
the completion of the Greenwood expansion and the delivery of full volumes under the 1.4 million MTPY of contracts assigned. Refer to Appendix for additional details; 5) The estimated incremental adjusted EBITDA from a drop-down of a wood pellet production plant or a
marine terminal represents the run-rate adjusted EBITDA that can be expected from such a facility, based on estimated production or terminaling capacity of such a facility upon achieving full run-rate and our sponsor’s existing contracts that may be associated with such a
facility. Refer to Appendix for additional details. The sequence of the drop-down transactions is for illustrative purposes only and subject to change. Although we expect to have the opportunity to acquire assets or completed development projects, including the Lucedale
plant, the Epes plant, and the Pascagoula terminal, from our sponsor in the future, we cannot assure you that our sponsor will be successful in completing their development projects or that we will successfully negotiate an agreement with our sponsor to acquire such
assets or projects
Targeting Annual Organic Growth in Underlying Base Business in Addition to Drop-Down Acquisitions and Plant Expansions
Illustrative Adjusted EBITDA Growth1
Completion of Construction
Expected By Mid-2021
Sponsor Contract Pipeline
Underwrites Additional Production
Plants~$10 - $15+
~$10 - $15+
Mid-Atlantic
Expansions3
(fully contracted)
Run-Rate Adjusted
EBITDA Contribution
from Greenwood and
Waycross4
(fully contracted)
2021 Guidance
Lucedale Plant5
(fully contracted)Pascagoula
Terminal5
Pascagoula
Cluster Plant 45
Epes Plant5
(fully contracted at
750k MTPY)
Multi-Plant
Expansions3
(fully contracted)
Bond Plant5
~$25 - $35
~$230 - $2502
~$56 - $60~$28 - $32
~$25 - $35+
~$25 - $35+
~$20
Existing Assets and Contract Portfolio
Expected to Generate Additional
$45 - $50 Million of Incremental
Adjusted EBITDA above 2021 Guidance3,4
~$25 - $50
Existing plant
infrastructure includes
an option to expand
initial production
capacity to more than
1 million MTPY
21
HIGH-CALIBER LEADERSHIP
Majority Independent Board with Significant Industry Experience
DirectorsExecutive Officers
John Keppler
Chairman & CEO
Alon
CenterPoint
BTG Pactual
Goldman SachsEPA
GM
BP
Williams
Buckeye
Jeffrey W. Ubben
Director (Independent)
Gerrity Lansing
Director (Independent)
Gary L. Whitlock
Director (Independent)
Jim H. Derryberry
Director
Ralph Alexander
Director
Janet S. Wong
Director (Independent)
William K. Reilly
Director (Independent)
John C. Bumgarner, Jr.
Director (Independent)Shai Even
EVP & CFO
Nic Lane
EVP, Human Capital
Thomas Meth
EVP, Sales & Marketing
Bill Schmidt
EVP, Corp. Dev. & GC
Yana Kravtsova
EVP, Comm., Public & Environ. Affairs
Royal Smith
EVP, Operations
Pierre F. Lapeyre, Jr.
Director
David M. Leuschen
Director
Additional Information
Night Shift at Enviva Pellets Northampton
23
CAPITALIZATION AND FINANCIAL PRIORITIES
1) Based on market value as of 3/31/2021; (2) As calculated under the revolving credit facility agreement
▪ Distribution Coverage Ratio: Targeting 1.2x on
a forward-looking annual basis
▪ Leverage Ratio2: Targeting between 3.5x –
4.0x
▪ Growth Financing: Expecting to finance growth
initiatives and acquisitions with 50% equity and
50% debt
▪ Distribution Growth: Committed to sustainably
growing the distribution
Financial Priorities
Notable Recent Financing Activities
▪ Amended revolving credit facility:
→ Increased size by 50% to $525 million from $350 million
→ Extended maturity to April 2026 from October 2023
→ Reduced cost of borrowing by 25 basis points
24
FAVORABLE CONTRACT STRUCTURE RESULTS IN DURABLE MARGINS
Illustrative ($ per metric ton)
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
1
2
3
4
5
6
7
Cut, Skid,
Haul
Stumpage
~$45 / MT
Adj.
Gross
Margin1
Shipping
ProductionTotal Raw
Materials
in COGS
Ports
Logistics
$200
Total Costs
of Goods
Sold
Cut, Skid,
Haul
Stumpage
◼ Long-term contracts with diversified customer base
◼ Fixed-price (with escalators), take-or-pay off-take contracts
◼ Fixed-price, USD / ton denominated shipping contracts matched to
length of off-take contracts
◼ Bunker fuel costs passed through to customers
◼ Shipping costs range from ~$20 / MT (Europe) to ~$35 / MT (Japan)
◼ Vertically integrated business model provides substantial operating
leverage as business grows
◼ Fixed USD / ton transportation costs from plants to port terminals by
truck / rail / barge
◼ “Build and copy” approach to allow for certainty of uptime and
economy of scale
◼ Includes labor, consumables, repairs and maintenance, and energy
costs
◼ Given fixed asset base, productivity improvements drive substantial
margin expansion opportunities
◼ ~2:1 green ton to pellet ton conversion (green wood is, on average,
composed of approximately 50% water, which varies seasonally. As
such, on average, EVA acquires approximately two green tons to
convert one pellet ton post the drying process)
◼ Majority of delivered price of fiber is comprised of labor, equipment
and hauling costs
◼ Fiber (“stumpage”) cost is ~10% of sales price, driven by strong fiber
basket in the Southeast U.S.
7
6
5
4
3
2
1
1) Adj. Gross Margin per Metric Ton defined in Appendix
25
NO MATERIAL IMPACT FROM COVID-191 PANDEMIC
◼ Number one priority is to ensure the health and well-being of our employees and the communities in which we operate
◼ Enhanced plans, procedures, and measures are in place to mitigate the risk of exposure and to make our work environment as safe as
possible for continued operations
◼ We operate a portfolio of nine geographically dispersed wood pellet production plants
◼ Our business supplies essential fuel to our customers under long-term, take-or-pay off-take contracts that our customers use for baseload heat
and power generation
◼ Most of our current deliveries are to Europe, where they fuel grid-critical baseload for dispatchable generation facilities that provide power and
heat required by their local communities. There are few substitutes or alternatives to the fuel we supply our customers
◼ In the U.S., government-issued guidance identifies biomass as one of the industries essential to the continued critical infrastructure viability,
and this guidance has been followed by states where our plants and terminals are located, meaning our operations remain largely unaffected
by the governmental actions taken in response to COVID-19
◼ Although EVA’s operational and financial results have not been materially impacted by the COVID-19 pandemic, the full implications of the
novel coronavirus are not yet known
— Plants, ports, and supply chains both domestically and internationally continue to operate uninterrupted on 24x7 basis
— Each of our customers is in compliance with their agreements with us, including payment terms
◼ If needed, we have contingency and business continuity plans in place that we believe would mitigate the impact of potential business
disruptions
1) ”COVID-19” refers to the outbreak of a novel strain of coronavirus
26
2021 GUIDANCE
1) As of April 28, 2021, the Partnership reaffirmed its full-year 2021 net income to be in the range of $42.3 million to $62.3 million, adjusted EBITDA to be in the range of $230.0 million to $250.0 million, and distributable cash flow to be in the range of $160.0 million to
$180.0 million, prior to any distributions attributable to incentive distribution rights. The Partnership expects to distribute at least $3.17 per common unit for full-year 2021, before considering the benefit of any acquisitions or drop-down transactions, and to target a
distribution coverage ratio of 1.20 times on a forward-looking annual basis. The guidance amounts provided above do not include the impact of any additional acquisitions by the Partnership from our sponsor or third parties;
2) Additional details are available as part of our earnings release as of April 28, 2021
Targeted Distribution Coverage Ratio is at Least 1.20 Times, on a Forward-Looking Annual Basis2
The Partnership Expects to Distribute at Least $3.17 Per Common Unit for Full-Year 20211
27
FINANCIAL RESULTS
1) See Appendix for Adjusted EBITDA, Adjusted Gross Margin per Metric Ton and Distributable Cash Flow reconciliations;
2) Prior to any distributions attributable to incentive distribution rights;
3) As of April 27, 2021, the Board declared a distribution of $0.785 per common unit for the first quarter of 2021
23 Consecutive Distribution Increases Since the IPO3
Appendix
29
This presentation contains certain financial measures that are not presented in accordance with accounting principles generally accepted in the United States
(“GAAP”). Although they should not be considered alternatives to the GAAP presentation of the financial results of the Partnership, management views such non-
GAAP measures as important to reflect the Partnership’s actual performance during the periods presented.
Non-GAAP Financial Measures
In addition to presenting our financial results in accordance with GAAP, we use adjusted gross margin, adjusted gross margin per metric ton, adjusted EBITDA,
and distributable cash flow to measure our financial performance.
Adjusted Gross Margin and Adjusted Gross Margin per Metric Ton
We define adjusted gross margin as gross margin excluding loss on disposal of assets, depreciation and amortization, changes in unrealized derivative
instruments related to hedged items included in gross margin, non-cash unit compensation expenses, and acquisition and integration costs and other, adjusting
for the effect of Commercial Services, and including MSA Fee Waivers. We define adjusted gross margin per metric ton as adjusted gross margin per metric ton
of wood pellets sold. We believe adjusted gross margin and adjusted gross margin per metric ton are meaningful measures because they compare our revenue-
generating activities to our operating costs for a view of profitability and performance on a total-dollar and a per-metric ton basis. Adjusted gross margin and
adjusted gross margin per metric ton will primarily be affected by our ability to meet targeted production volumes and to control direct and indirect costs
associated with procurement and delivery of wood fiber to our wood pellet production plants and our production and distribution of wood pellets.
Adjusted EBITDA
We define adjusted EBITDA as net income excluding depreciation and amortization, interest expense, income tax expense (benefit), early retirement of debt
obligations, non-cash unit compensation expense, loss on disposal of assets, changes in unrealized derivative instruments related to hedged items included in
gross margin and other income and expense, and acquisition and integration costs and other, adjusting for the effect of Commercial Services, and including MSA
Fee Waivers. Adjusted EBITDA is a supplemental measure used by our management and other users of our financial statements, such as investors, commercial
banks and research analysts, to assess the financial performance of our assets without regard to financing methods or capital structure.
NON-GAAP FINANCIAL MEASURES
30
Distributable Cash Flow
We define distributable cash flow as adjusted EBITDA less maintenance capital expenditures, cash income tax expenses, and interest expense net of amortization
of debt issuance costs, debt premium, original issue discounts, and the impact from incremental borrowings related to the Chesapeake Incident and Hurricane
Events. We use distributable cash flow as a performance metric to compare our cash-generating performance from period to period and to compare the cash-
generating performance for specific periods to the cash distributions (if any) that are expected to be paid to our unitholders. We do not rely on distributable cash
flow as a liquidity measure.
Limitations of Non-GAAP Financial Measures
Adjusted net income, adjusted gross margin, adjusted gross margin per metric ton, adjusted EBITDA, and distributable cash flow are not financial measures
presented in accordance with GAAP. We believe that the presentation of these non-GAAP financial measures provides useful information to investors in assessing
our financial condition and results of operations. Our non-GAAP financial measures should not be considered as alternatives to the most directly comparable
GAAP financial measures. Each of these non-GAAP financial measures has important limitations as an analytical tool because they exclude some, but not all,
items that affect the most directly comparable GAAP financial measures. You should not consider adjusted net income, adjusted gross margin, adjusted gross
margin per metric ton, adjusted EBITDA, or distributable cash flow in isolation or as substitutes for analysis of our results as reported under GAAP.
Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
The estimated incremental adjusted EBITDA that can be expected from the Mid-Atlantic and Multi-Plant Expansions is based on an internal financial analysis of
the anticipated benefit from the incremental production capacity and cost savings at the Northampton, Southampton, Sampson, Hamlet, and Cottondale plants and
is based on numerous assumptions that are subject to significant risks and uncertainties. Those assumptions are inherently uncertain and subject to significant
business, economic, financial, regulatory, and competitive risks and uncertainties that could cause actual results and amounts to differ materially from such
estimate. A reconciliation of the estimated incremental adjusted EBITDA expected to be generated by the Mid-Atlantic and Multi-Plant Expansions to the closest
GAAP financial measure, net income, is not provided because net income expected to be generated by the expansions is not available without unreasonable
effort, in part because the amount of estimated incremental interest expense related to the financing of the expansions and depreciation is not available at this
time.
NON-GAAP FINANCIAL MEASURES (CONT.)
31
NON-GAAP FINANCIAL MEASURES RECONCILIATION
The following table provides a reconciliation of distributable cash flow and adjusted EBITDA to net income (loss):
See Note 1 of our financial statements, Description of Business and Basis of Presentation, to our Annual Report on the 10-K and slide 29 through 30 for basis of presentation.
32
NON-GAAP FINANCIAL MEASURES RECONCILIATION (CONT.)
The following table provides a reconciliation of gross margin to adjusted gross margin per metric ton:
See Note 1 of our financial statements, Description of Business and Basis of Presentation, to our Annual Report on the 10-K and slide 29 through 30 for basis of presentation.
33
2021 GUIDANCE
1) Includes primarily expected $19.0 million of MSA Fee Waivers associated with the acquisition of Enviva Pellets Greenwood, LLC
34
2021 AND 2024 GUIDANCE FOR THE GREENWOOD AND WAYCROSS ACQUISITIONS
The following table provides a reconciliation of the estimated adjusted EBITDA to the estimated net income associated with the Greenwood and Waycross
Acquisitions2 for the twelve months ending December 31, 2021 and 2024 (in millions):
1) Includes expected $19.0 million of MSA Fee Waivers associated with the Partnership’s acquisition (the “Greenwood Acquisition”) of the Greenwood plant;
2) The Greenwood Acquisition, which closed on July 1, 2020, and the Georgia Biomass Acquisition, which closed on July 31, 2020, are collectively referred to as “the Acquisitions”
